On February 23, 2022 the European Comission adopted Proposal for a Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937 aiming to regulate corporate due diligence in the European Union. Aim of this Proposal is to achieve greater goals of the EU reagrding the human rights and transition to sustainable economy as well as ensuring proper functioning of the European single market. This Proposal would apply to EU and non – EU companies that meet high requirements, seeing that the Proposal has narrow personal scope of application with the expectation of wider indirect impact on other companies. Transposition of this Directive into the national laws would result in establishing a corporate sustainability due diligence duty for companies within the personal scope of the mentioned Directive, thereat the involment of directors would be required. In addition to the corporate sustainability due diligence duty this Proposal includes a civil liability rules for companies in case of infringement of any of obligations. This Proposal for a Directive is only one element of a more complex system established by the EU in order to build a sustainable economy. Regarding the importance of this Proposal for a Directive, the aim of this paper is to describe the context within this Proposal has been created, content of the Proposal and proposed amendments, subsequently to give an answer on some specific questions that may occur regarding the transposition of the Directive into the Croatian law as well as to point out the critics and possible impacts connected to this Proposal for a Directive.